KDCA denies allegations of sudden surge in contracts with companies related to Baek Kyung-ran's sibling

[Image source=Yonhap News]

[Asia Economy Reporter Byeon Seon-jin] The Korea Disease Control and Prevention Agency (KDCA) clarified on the 8th regarding allegations that the contract volume between the KDCA and a genetic analysis specialized company surged when Baek Kyung-ran, the head of KDCA, had a sibling who was a candidate for an outside director at the company. The agency stated, “Since July, various Omicron subvariants have been introduced domestically, leading to large-scale contracts,” and that the selection of the company was conducted legally in accordance with relevant laws.

In a press release distributed to the press corps on the same day, the KDCA explained, “After the Omicron variant BA.5 became dominant in July, the number of its subvariants surged to over 390, unlike the previous Delta wave. The Omicron wave is still ongoing,” adding, “Due to the rapid increase in COVID-19 variant viruses, the KDCA has expanded whole genome sequencing analysis.”

According to the KDCA, identifying all subvariants of COVID-19 is only possible through ‘whole genome sequencing analysis,’ and at the point when various subvariants of COVID-19 began to surge, expanding whole genome sequencing became essential. The KDCA also stated that since January 2020, when COVID-19 first emerged, it has been conducting whole and partial genome analyses through external specialized analysis service providers.

The day before, controversy over conflict of interest arose as the scale of genome analysis contracts (15,000 cases from August 23 to December 27) during the period when Baek’s sibling was presumed to be a candidate for an outside director at a company related to the KDCA was more than six times the previous contract (2,450 cases from May 4 to August 25). The contract period began after Baek’s sibling submitted a statement of duties as an outside director candidate for DNA Link to the Financial Supervisory Service’s electronic disclosure system on August 10, which included the phrase, “Coincidentally, my older sister is Baek Kyung-ran, the second head of the KDCA.” DNA Link mainly provides genome analysis services and produces COVID-19 diagnostic kits.

The KDCA explained, “Whole genome sequencing is a high-cost technology, but this year, due to advancements in analysis technology, the price of COVID-19 genome analysis has significantly decreased compared to before, while enabling the analysis of a large number of samples through advanced technology introduced to domestic private companies,” adding, “We have continuously expanded the number of external whole genome sequencing analysis contracts to improve efficiency using private sector technology.” However, it also noted, “Currently, only a few domestic private companies possess this technology.”

The KDCA further stated, “The company was selected through the Public Procurement Service’s bidding process in accordance with the National Contract Act, and after verifying the company’s analysis capabilities with a small contract in January, a second contract was made in May,” explaining, “Since July, various Omicron subvariants have rapidly entered the country, and large-scale contracts were made for the rapid response of quarantine authorities.”

This content was produced with the assistance of AI translation services.